Deere & Company has formally announced its acquisition of the Wirtgen Group, a leading global manufacturer of road construction equipment.The purchase price for the equity is $4879.84Bn. The Wirtgen Group had record sales of $2,912Bn in the year that ended in December 31, 2016.
As a firm based in Germany, the Wirtgen Group runs five premium brands across the entire road construction sector. Wirtgen’s highly complementary product portfolio enhances Deere’s existing construction equipment offering and will establish Deere as an industry leader in global road construction sector.
The Wirtgen Group has a global footprint with approximately 8 000 employees and sells products in more than 100 countries through a large network of company-owned and independent dealers.
Samuel R. Allen, Deere & Company Chairman and Chief Executive Officer said that the move was in line with their long term expansion strategy. He added that the transaction enhances Deer& Company’s global distribution options in construction equipment and enhances their capabilities in emerging markets.
Stefan Wirtgen, Managing Director at Wirtgen, says the Wirtgen Group has a legacy of technology and innovation with market-leading products and a strong focus on the customer.
Deere plans to maintain the Wirtgen Group’s existing brands, management, manufacturing footprint, employees and distribution network.
The combined business is expected to benefit from sharing best practices in distribution, customer support, manufacturing and technology as well as in scale and efficiency of operations.
The transaction has been approved by Deere’s Board of Directors. The purchase is subject to regulatory approval in several jurisdictions as well as certain other customary closing conditions. The companies said they expect to close on the transaction in the first quarter of Deere’s 2018 fiscal year.